I think it's fair to make the case that something should be legally wrong, hence why I mentioned it. Something can be legally wrong but not ethically wrong and

I think it's fair to make the case that something should be legally wrong, hence why I mentioned it. Something can be legally wrong but not ethically wrong and vice versa, and the best way to fix the problem is to address both at the same time. And I think the rationalization would be that investors create more value through ensuring efficient value extraction which then flows back into the economy. But overall I think you're right in that we should discourage value extraction because of how it leads to running businesses to favor yourself or your investors rather than the business itself. The contrast is that what's good for investors isn't always good for the business and vice versa. Right now I don't think there's strong enough checks on investors, since even in the case of failures they often come out ahead.